Answer:
a. 1 Pound/1.29 or 0.78 Pound/Mark
b. Overvalued
Explanation:
a. What should the pound-mark exchange rate be in 2012?
Ratio of Pacifica pound to Atlantica mark in 2012 = 360/280 = 1.29
Or,
Ratio of Atlantica mark to Pacifica pound in 2012 = 280/360 = 0.78
Therefore, according to the relative purchasing power parity (PPP) theory, one Pacifica pound should equal to 1.29 Atlantica mark, i.e. 1 Pound/1.29 Mark.
This can also be stated differently that 1 Atlantica mark should equal to 0.78 Pacifica pound, i.e. 0.78 Pound/Mark.
b. If the actual pound per mark exchange rate is 0.5 pound/mark in 2012, is the mark overvalued or undervalued relative to its PPP value
Since the PPP pound per mark exchange rate value estimated in a above is 0.78 Pound/ Mark is higher than the actual pound per mark exchange rate of 0.5 pound/mark in 2012, mark is therefore overvalued.
Answer:
$34,310.45
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.
When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.
Cash flow in year 0 = $-200,000
Cash flow in year 1 - 5 = 65,000
I = 12%
NPV = $34,310.45
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
One difference between services in the production of goods is that the services are <u>consumed by the consumer instantly </u> where as good as can be<u> stored by the consumer </u>
Explanation:
Goods and services are two important types of purchases that people make.
A good is termed as tangible or physical product that people can buy, tangible meaning something you can touch,and store for later use
A service is said to be intangible, which can't be physically touched or stored.You can only pay for a service
The term Perishability means that services cannot be stored for later sale or use. In other words, services cannot be inventoried. This is one of the most significant characteristics of services, and it has a major impact on financial results of a company
One difference between services in the production of goods is that the services are <u>consumed by the consumer instantly </u> where as good as can be<u> stored by the consumer </u>
Answer:
The correct answer is $30,290.
Explanation:
According to the scenario, the computation can be done as follows:
This applies regular MACRs
So, As furniture is the Seven year property,
So, the cost recovery deduction for the furniture = $100,000 × .1429
= $14,290
And The computer is a five year asset
So, the cost recovery deduction for the Computer = $80,000 × .20
= $16,000
So, Total Cost recovery deduction = Cost of recovery deduction for furniture + cost of recovery deduction for computer
= $14,290 + $16,000
= $30,290
Hence, the cost recovery deduction for the business assets for 2019 is $30,290.
Answer:
A)Tax preparation
Explanation:
Gross domestic product is the sum total of all goods and services produced by a country within a given period.
Goods are tangible products that are produced by the country and in this scenario includes photographs, reclining chairs, and photographs.
Services on the other hand are those intangible actions that produce value to the end user. An example of service is tax preparation.
If an individual requires his taxes to be prepared but does not have the skill to do it. They will hire someone to do it and pay for the service.
